While the end of the Fed’s quantitative tightening is coming into view, the European Central Bank, Bank of Japan and Bank of England are set to shrink their balance sheets by a combined $2.6 trillion through 2026. There is another $450 billion in roll-off from the Fed through April 2025, adding up to about $2.2 trillion since early 2022. That total QT is the equivalent of raising the federal funds rate by about 29 basis points over three years, pushing up 10-year yields by 6 bps.